When you are in the market for a new car, you have a variety of options available to you. You can buy a car outright with cash and there is also the possibility of getting a car on a finance agreement. Financing will cost you more but it could be your only option. In both cases you could be shocked by the depreciation that occurs the second you drive your new car out of the showroom.
There is a third option that is growing massively in popularity; and that is car leasing. If you are looking to lease cars instead of purchase them, there are a variety of benefits.
When purchasing a new car either outright with cash or on finance, an important consideration is what will happen when they come to sell it. This is why depreciation is such an issue for people purchasing a new car. A standard car can depreciate by 50-60% over three years, for example, a Ford Focus is worth just 36% of its original price after 3 years.
When leasing a car, depreciation is not a concern as you hand the car back to the leasing company rather than having to sell it or keep it. If owning the car is not a major priority for you, then leasing is a great way of avoiding the cost of depreciation.
Lower monthly costs
When getting a car on finance, you obviously have to pay a monthly amount in order to own the car. The same goes for leasing a car, however the monthly costs are usually cheaper for leasing than they are on finance. Car leasing monthly payments are usually 30-60% lower than the normal finance options payments. Again, using the Ford Focus as an example. The average monthly payment on finance is £384.98, however, on a leasing agreement, that monthly payment can drop down to £225.60.
A major benefit of car leasing is that it is cheaper month on month compared with purchasing a car on finance. This actually allows you to spread your budget further, so you afford to lease a better quality car. The top three brands for car leasing are Mercedes, BMW and Audi.
Cheap car leasing deals are always available on the majority of cars on the market. It doesn’t matter if you have excellent credit or poor credit, you will be considered. Car leasing could offer you a simpler and better value way of obtaining a car than an outright purchase.